APC Action Plan 2014 FINAL - Supercheap...

Super Retail Group

Australian Packaging Covenant

Action Plan

July 2014 – June 2018

Introduction

This 4-year action plan sets out the strategies, actions and goals of the Group as a

brand owner, retailer and signatory to the Australian Packaging Covenant. The Group

is focused on implementing the outlined actions via the principles of product

stewardship with an aim to continually improve its environmental impact with

respect to packaging and waste management. This plan embodies the Group’s

commitment to improving the design, recovery and recycling of its packaging

materials.

Executive Summary

The Group recognises the importance of the Australian Packaging Covenant and its

focus on encouraging responsible management of packaging and its associated

waste.

Since becoming a signatory in July 2008, the Group has embraced the principles of

product stewardship to ensure the environmental impact on new or existing

packaging is continuously monitored and minimised, via a collaborative approach

with our Trade Partners, and education of its team members and customers.

As a part of this plan, the Group’s focus on future sustainability aims to:

1. Optimise packaging to achieve resource efficiency and reduce environmental

impact without compromising quality and safety.

2. Adopt and implement the Sustainable Packaging Guidelines.

3. Use packaging that is sourced from recycled product, where appropriate.

4. Use packaging that is made from recyclable materials, where appropriate.

5. Re-use packaging where possible.

6. Continue to look for opportunities to recycle in our stores, offices and

Distribution Centres.

7. Inform our customers of the recycling abilities of the packaging they have

obtained on our house-branded products.

8. Analyse, monitor, review and report on our progress, and update the plan

annually, if necessary.

9. Recycle product where possible and cost effective (eg. Oil and lead acid

batteries).

10. Look for opportunities to be part of or support community-based litter

reduction programs to reduce litter. All of the Group’s subsidiary companies have been included in this action plan.

Packaging materials and formats currently used by the Group

Plastic Paper Metal

Blister/Double blister

Shrink Film

Plastic bags

Plastic containers

Plastic backing card

Plastic tag strings

Plastic boxes

Cardboard

(standard)

Aluminium

Company Profile

The Group comprises eight retail businesses: Supercheap Auto, BCF (Boating

Camping and Fishing), Gold Cross Cycles, Ray’s Outdoors (acquired in July 2010), FCO

(Fishing Camping Outdoors), Rebel Sport and Amart All Sports (acquired in October

2011), Workout World (acquired in November 2013) and two wholesale businesses:

Oceania Bicycles (partly-owned) and Super Retail Commercial (incorporated in

September 2011). Started in 1972 and publicly listed in 2004, the Group has grown

to become one of Australasia’s leading specialty retailers with more than 630 stores,

7 Distribution Centres and annualised turnover in excess of $2 billion.

With operations in Australia, New Zealand and China, Super Retail Group’s success is

underpinned by a continued focus on maintaining and enhancing our culture,

products and core values, which are embodied by our passionate team of more than

12,000.

Our ability to deliver great value, choices, products and service to our customers, in

whichever manner they prefer to experience our brands, is achieved through our

continued focus on new product introduction, sourcing and supply chain initiatives,

and the further development of our integrated multi-channel customer offer.

Our Environmental Management Systems (EMS)

As part of the Group’s commitment to reduce its environmental impacts and better manage

its environmental practices, an EMS was developed in May 2011, in line with the ISO 14001.

Our EMS Committee meets in a quarterly basis to review the Group’s environmental

performance and discuss improvements.

Our House Brands

House brands are a core focus of the Group and we are committed to the ongoing

stewardship of this diverse range to ensure that our packaging is optimised. Our

current brands are listed below:

Key Contact Details

Renata Lopes

Group Sustainability Manager

/// Super Retail Group

751 Gympie Rd| Lawnton QLD 4501

PO Box 344 | Strathpine QLD 4500

P: +61 7 3482 7496 | F: +61 7 32058467

E: [email protected]

Managing Director’s Endorsement

The Group supports the principles of product stewardship for packaging and those of

the Australian Packaging Covenant and is committed to achieving the goals outlined

this action plan. It recognises the need to incorporate the Sustainable Packaging

Guidelines when introducing new products into its market and has been working

closely with its trade partners, team members and customers to support the

Covenant’s principles.

This action plan has the full endorsement and support of the Group’s Leadership

Team.

Peter Birtles

Managing Director

Baseline position and Action Plan Table

Performance goals

and KPIs

Actions Responsibility Baseline data Targets Timeline

1. Design - optimise packaging to achieve resource efficiency and reduce environmental impact

1. Review our internal policies to ensure

compliance with the SPG

Group Sustainability

Risk Management

Environmental

Policy and

Ethical

Sourcing

Policy in place

Annual

review/update of

policies

Annually KPI 1 – Proportion of

signatories in the

supply chain

implementing the SPG

for design or

procurement of

packaging.

Target: 70% of

Covenant signatories

with documented

policies and

procedures for

evaluating and

procuring packaging

using the SPG or

equivalent

Target: 70% of


assessing 100% of

2. Review our internal procedures to ensure

compliance with the SPG – new and

existing packaging


Group Logistics/ Packaging

Department

International Operations

Group Compliance

Merchandising (all brands)

New

packaging

New line

process in

place (99%

packaging

assessed

FY13)

Existing

packaging

Factory and

DC packaging

random

checks in

place (80%

packaging

assessed

Identify any gaps

and opportunity

for

improvements

100% packaging

assessed by FY18

(new and

existing)

Annually

FY13)

3. Continue to promote the SPG and

sustainable packaging to our Trade

Partners




Last formal

letter from

Group sent to

Trade

Partners in

May 2011

Sustainable

Packaging

Guidelines

available at

SRG website

Annual letters to

Trade Partners

Review guides

available at SRG

website and

include further

materials, if

applicable

Annually

4. Continue to work closely with Trade

Partners to communicate requirements

for changes to packaging (new and

existing packaging)



Department


In place Address all non-

compliant

packaging with

Trade Partners

Annually

new packaging and

50% of existing

packaging against the

guidelines

5. Assess current Trading Terms and

documents available to Trade Partners to

ensure that APC requirements are clearly

communicated



Department



The following

documents

are currently

in place:

Logistics,

Packaging,

Labelling &

Barcoding

specifications,

SRGS Trading

Terms and

Recycling Logo

Identify any gaps

and opportunity

for

improvements

December

14

Guidelines

6. Review existing packaging in stores and

evaluate compliance with the SPG (all

Australian brands)



Department

Ad hoc

reviews are

currently

performed at

store level

Document

findings and

address areas of

improvement

with Trade

Partners

Annually

7. Review guides and education materials

available to Team Members in

Merchandising and International

Operations

Group Sustainability APC folder in

place in our

internal media

(Basil)

Guides and

education

materials

available to all

team members

in a central

location

Annually

8. Require all team members in

Merchandising and Packaging teams (all

brands and International Operations) to

complete the Sustainable Packaging

toolkit available at the APC website:

http://www.packagingcovenant.org.au/toolkit/

HR/L&D




Department

New initiative All team

members in

Merchandising to

complete the

toolkit

Training to

be rolled out

by July 2015

Team

members to

complete

the training

annually

9. Integrate the Sustainable Packaging

toolkit as an induction requirement for all

team members in Merchandising (all

brands and International Operations) and

Packaging departments

HR/L&D




Department

Toolkit is not

an induction

requirement

Toolkit to be

included in the

induction

program

L&D to

include

toolkit on

induction

program by

July 2015

All new team

members

being

inducted

into toolkit

by

December

2015

10. Continue to document and report

changes to packaging as part of our

packaging compliance review

International Operations APC Example

record

document in

place

Changes

documented and

reported

Annually

11. Continue to investigate any customer and

team member feedback in relation to

items of packaging that appear to be

contrary to the SPG




Department

In place All complaints to

be

investigated and

addressed

Annually

Performance goals and

KPIs

Actions Responsibility Baseline data Targets Milestones

2. Recycling - the efficient collection and recycling of packaging

KPI 3 – Proportion of

signatories with on-site

recovery systems for

recycling used

packaging

1. Review current recovery systems and

incorporate changes, where feasible.

Group Sustainability Cardboard,

paper and

shrink wrap

recycling in

place (where

services are

available)

Cartridge

recycling and

stationary

All stores,

Distribution

Centres and

offices with

onsite

recovery

system (where

services are

available)

Annually

reuse also in

place

2. Increase recycling rate for total waste

materials generated on site

Retail (all brands)

Group Logistics/ DCs

Our recycling

rate in FY 13

was 51.5%

Increase

recycling rates

by at least 1%

at the end of

each FY. This

may be

achieved by

educating team

members,

changing

behaviour and

identifying new

waste streams

FY15 – 52.5%

FY16 – 53.5%

FY17 – 54.5%

FY18 – 55.5%

3. Continue to report our recycling rates

to management

Group Sustainability Recycling rates

are currently

reported via

Board Reports

and EMS

meetings and

monthly waste

reports are

sent to our

Retail

Operations

Managers

Recycling rates

documented

and reported to

management

Monthly

4. Continue to recover recyclable

packaging from obsolete products

prior to disposal, and recycle


Retail

(all brands)

Guidelines on

disposal &

product

All recyclable

packaging

recovered

Annually

Group Logistics/DCs

destruction in

place

5. Continue to hold regular meetings

with waste provider to discuss

current issues, identify gaps and

opportunities for improvement

Group Sustainability Regular

meetings in

place

All meetings

documented

Biannual

6. Require all team members to

complete the Sustainability Training

HR/L&D

Retail (all brands)

Sustainability

Training

developed and

launched to

Retail in

September

2013

Draft

Sustainability

training

developed but

needs to be

launched to

DCs and Head

Offices

All team

members to

complete the

training

Annually

7. Integrate Sustainability Training as an

induction requirement for all team

members

HR/L&D

Retail (all brands)

Sustainability

Training is not

an induction

requirement

Sustainability

Training to be

included in the

induction

program

L&D to

include

Sustainability

Training on

induction

program by

July 2015

All new team

members

being

inducted into

toolkit by

December

2015

8. Continue to promote waste reduction

through internal media channels to

raise Team Members’ awareness


Group Marketing

Retail (all brands)

In place via

intranet

(Basil), the

Bulletin

(newsletter to

Retail stores)

and the

Gazette(all

departments)

Regular articles

published to all

Team Members

Annually

9. Review Sustainable Purchasing Policy Group Sustainability

Group Procurement

Policy in place Annual

review/update

of policy

Annually KPI 4 – Proportion of

signatories with a

policy to buy products

made from recycled

packaging. All APC

signatories will have a

formal, documented

policy of buying

recycled products or

materials

10. Establish metrics to record progress

made since the introduction of our

Sustainable Procurement Policy


Group Procurement

No baseline

recorded

Establish

baseline and

record

purchases

influenced

by the policy

Baseline

established

by Dec 2014

All purchases

influenced by

the policy

documented

from August

2015

11. Identify opportunities to purchase

items with increased recycled

content for office use (i.e. office

paper)


Group Procurement

New initiative Opportunities

identified and

implemented,

where feasible

Annually

12. Review packaging sourced from

overseas suppliers through APC data

analysis to pursue continuous

improvement

International Operations An APC data

analysis

performed by

our

International

Operations

team in FY13

revealed that:

- Cardboard is

the only

material used

for inner and

outer;

- Paper is the

most popular

used material

across the

Group (50%)

for each; and

- All paper and

cardboard

used to

package our

imported

products are

made of 100%

Annual APC

data analysis

Annually

recycled paper


KPIs


3. Product Stewardship - demonstrated commitment to product stewardship

1. Perform audits/ internal reviews to

evaluate overseas supplier’s

environmental compliance.


Group Compliance

In place All new

factories

audited

Annually

2. Monitor our waste management

practices and investigate opportunities

for improvement.

Group Sustainability In place Identify

problem areas

and address

them as they

occur

Annually

3. Continue to engage with suppliers to

improve packaging design and

recyclability



In place Ongoing

assistance to

Overseas and

local suppliers

Annually

4. Continue to promote our participation in

the APC


Group Communications

We currently

promote our

participation in

our corporate

website,

intranet (Basil),

Financial

reports and

Corporate

Reviews

Identify new

channels to

promote our

participation

Annually


signatories that have

formal processes for

working with others to

improve design and

recycling of packaging

Target: 70% of


implementing formal

policies and procedures

in working with others

to improve design,

procurement and

recovery of packaging

5. Review progress of Action Plan with

responsible departments


EMS Committee Members

Updates of

progress during

EMS meetings

Review

progress and

address issues

Quarterly

with

committee

members

6. Continue to collect used car batteries in

SCA stores for recycling

Merchandising – Auto division

30,844 used

batteries

collected in

FY13

125,000 used

batteries

collected by

FY18

Report

progress

annually

Annually

7. Continue to collect used oil in SCA stores

for recycling

Merchandising – Auto division

It is estimated

that 17,850

litres of oil was

collected in

stores and sent

to recycling

facilities from

January to June

13 (56 trial

stores).

Establish

baseline for full

FY

Establish

targets

Establish

baseline by

end of FY14

Establish

target by

FY15


signatories

demonstrating other

product stewardship

outcomes

8. Identify opportunities for energy

reduction

Group Property In place:

1.Behavioural

control -

educating

Team

Members on

how to reduce

power usage

2.Trialing

All

opportunities

investigated

and addressed.

Updates via

EMS meetings

Annually

energy saving

devices and

control

equipment.

3.Retro-fitting

T8 fluorescent

bulbs with

highly efficient

T5 fluorescent

bulbs in

selected sites

9. Review E-waste recycling practices Group IS Tender process

in place and

expected to be

finalized by

end of FY14

Contract for E-

waste recycling

in place

FY15

10. Include Action plan outcomes in

Corporate Social Responsibility Reporting

Group Sustainability First CSR

Report due to

be released in

August 2014

APC relevant

annual report

outcomes

included in

annual CSR

report

From FY15

11. Identify opportunities to range products

with environmental benefits

Merchandising (all brands) In place Opportunities

identified

during product

range review

Annually

12. Continue to improve APC star ratings Group Sustainability FY9 – 3.6

FY10 – 3.7

FY11 – 3.7

At least 4 (out

of 5) average

score from

Annually

FY12 – 4.3 FY15-FY18

13. Continue to investigate other recycling

programs or end-to-end stewardship

arrangements (i.e. equipment, apparel

recycling, etc) and implement where

feasible



In place Identify at least

one

opportunity

per year

Annually


KPIs


3. Product Stewardship - demonstrated commitment to product stewardship

1. Promote sales of reusable enviro bags Merchandising (Leisure & Auto)

Retail (Leisure & Auto)

Sales in FY 13

BCF – 13,207

Rays – 16,832

SCA – 17,154

Increase sales

by at least 1%

per year

Annually

2. Investigate opportunities to range

reusable enviro bags at Rebel, Amart and

GX stores

Sports Retail & Merchandising Reusable

enviro bags are

not available

for sale at

Rebel, Amart

and GX stores

Reusable

enviro bags

available for

sale at Rebel,

Amart and GX

stores

FY 15

3. Include recycling messages and symbols

in product packaging (where applicable)

and media material.


Marketing (all brands)

International Operations (all

brands)

In place –

recyclable

packaging and

catalogues

Investigate

new messages

and media

channels

Annually

KPI 8 – Reduction in

the number of

packaging items in

litter

4. Investigate opportunities to be part of or

support litter reduction programs


Group Marketing

In place

Internal -

Business Clean

Up Day

Internal and

external

participation

Annually

External - Ad

hoc (i.e. Green

Money)

5. Review packaging materials sourced from

International Operations Trade Partners

and identify improvement areas

International Operations In place –

yearly APC data

analysis

Report results

annually

All

opportunities

investigated

and addressed.

Annually

6. Improve container space utilization by

aligning carton size with container size

International Operations Packaging

optimisation

program in

place

Report results

annually

All

opportunities

investigated

and addressed.

Annually

APC Action Plan 2014 FINAL - Supercheap...

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